>> we are in a wartime situation and in a situation like this you do whatever it takes. >> you don't really have to worry about inflation. >> heads are doing what they need to do, which is to revive an economy. >> this will be an excellent year for growth. >> the public still has money in reserves. >> i think it will be enormous spending in this country. i think the boom is coming. announcer: this is bloomberg surveillance with tom keene, jon ferro, and lisa abramowicz. jonathan: with equity futures retreated, there is only one game in town, the handling of the pandemic. tom: above the full on every paper and i would empathize this

is -- emphasizes is a global issue. the new administration, dr. fauci, look at hong kong where they are doing serious and selective lockdowns across the street. it is a variables do, but it is worldwide, and it is right now. jon: the struggle israel and i have to say in the united states the coverage of the incoming administration has been almost giddy, and i get it. the approach, it is more coherent. i understand that. the signaling is much more powerful, but let's look at the numbers. the goal of the administration is 100 million vaccinations in the next 100 days. in the previous seven days, the previous week the daily averages 940,000. retract the numbers. we're almost there. you could make the argument that sustaining the level is difficult and there is a lot of work to do to achieve that, but

others would make the argument it is not bold enough. you have to lift the target. tom: you have to lift the target, but there are other things as well. i think the president yesterday extrapolating out 500,000, as we did, 78 days ago, is sobering for the nation. i would suggest you have science back on the burden. -- burner. that was the most important statement from dr. fauci that science is visible and listened to. that is a big change. jon: liberated, freer, dr. fauci. lisa abramowicz, that is lisa: where the focus is. lisa:today we have the senate voting on lloyd austin to become the defense secretary, to become the first african-american person to serve in that role. janet yellen may be confirmed as treasury secretary. she has a lot on the docket including potential tax increases for wealthy americans and corporations. the 12th: 30 p.m. white house

press briefings will be delivered by jen psaki. it'll be interesting to see how they try to push forward the wartime financing, emphasized the importance of growth over deficit with the idea of the deficit been important to get the economy out of a hole. joe biden is expected to speak & more executive orders. to your point about the ambition going forward to try to tackle the pandemic, the concern is, number one, the virus is spreading rapidly and you have the new variant accelerating that, we are dealing with hospitals that are overcrowded. you have supply chains that are disrupted, vaccination schedules that have gotten delayed, and this is the real nuts and bolts of it. there are physical obstacles getting to these goals, which are making a lot of policymakers check themselves and a lot of economists say we are not out of the woods and this is the tension undermining the market at record highs.

jon: and the tension is much more intense in europe, in germany, italy, with delays in the vaccine rollout, trying to build up across the continent. we will touch on that. good morning to you all. on the week, firmer, on the session, lower -- we are down by about 25 of just part -- s&p 500. up by 6.5% in the bond market. treasury markets following, down two basis points. it down a little more than a basis point on the 10-year, south of 1.1%. that is the story in the u.s. treasury markets -- how many to actually made it through the ecb news conference yesterday? do you remember the news conference 12 months ago where most people fell asleep? did it feel like that yesterday? tom: i will cut some slack for christine lagarde. to your point, yes, it was a diffuse conference, the -- very

different from the acuity you are getting from mario draghi. i don't think it was as snoozing as it was a year ago or whatever it was, but to your point, they are in search of a theory -- i think it is an important statement -- what is the theory underpinning the way forward and you cannot do that unless you have a fiscal policy to bouncea? jon: i am with you, and i have some sympathy for the ecb president as well. the outlook is not just in the hands of fiscal, but also in the vaccine rollout should europe, compared to the net states and the u.k. is not a there, not close enough. joining us now, chris harvey at wells fargo. every market participant has an idea of when they think things return to normal, a placeholder on the calendar -- is one million -- does one million vaccines a day in the united

states get it done? christopher: i think it does get it done. my dad got the vaccination over the next couple of days. i expect to get the vaccination between march and june, and i would say by the end of june i would expect most people that want to get the vaccination have gotten it, so i think that atomic it to september of next year, my son is going back to school, things look a lot more normal and we can start to think about things as we typically have. tom: bloomberg intelligence did a wonderful summary on technology, and they basically said look, there is this distraction, this distraction -- here is the revenue billed, the margin billed and the free cash flow of these tech giants. they have to deal with the pandemic as well. do you expect a blowout tech quarter because of covid, the pandemic? christopher: tom, let's talk about guidance for a second. i think it is more about

guidance than what you report right here, right now -- we think guidance across the board, tech or otherwise will be good -- good, but not great, and that is fine if you're stock has lagged the market, is flat, but if you're stock is up, good i don't think is good enough and we think it plays a key part in how stocks will react in the short-term and how they will play out over the next couple of months. lisa: given where we are in valuations and how much we have increased expectations for forecasts going forward, are you starting to sell? are you starting to feel bubbly? christopher: "am i starting to feel bubbly." lisa, i never feel bubbly. [laughter] are we rotating, starting to go to parts of the markets we haven't been, yes -- we want to be more contrarian, we wanted cyclicality, and we want to move away from the tech in growth

names. one of the problems we think is in the pain trade is the recovery, and as the recovery occurs, growth is no longer scarce -- the scarcity value and the premium you put on growth companies starts to disappear, so we do want to rotate away from growth and toward situations that have been less picked over. jon: let me jump in. what you are talking about is important -- the secret thing of the return to growth. initially, when we reopen, and hopefully that is in the summer, and deeper into summer we reopen a little more. we know what happens mechanically speaking. we experienced at last year -- you get the nice pop in rebound, growth, and at that point people start to believe growth is not scarce. what i would ask of you is if you can extrapolate the growth rate in two 2022, 2023, 2024, and if we have done enough on

the policy side to adjust trend growth because making the sequential call of shutdowns to reopening and rotating the cyclical parts of the market is one thing. sticking with it through the cycle because you think trend growth will be higher and growth won't be scarce, that is a different call. christopher: you are right. you hit on a ton of things. a lot to unpack there. what we did not touch on is what does the tech situation look like in the year? we don't think it looks better. we think we will be talking about higher taxes. to answer a question of what does growth look like -- we are very mature economy -- we have roads, houses, buildings, infrastructure. it takes a ton to get to 3% gdp and to stay there. i don't see that going forward we are going to get a pop, a good situation in the second half, and even in the first half

of the year, but do you want to stick around for the bill? when taxes come due, i'm not socially want to stick around because we are in a rent, not own situation. jon: enjoy the weekend. christopher: u2. thank you. jon: i think it is mission critical for a program at this to continue the conversation. that is the debate. when people make the cyclical call, what is the duration of the call? tom: the x access is everything, and to your point on duration, it goes to the pandemic winners. about amazon, they got a huge pandemic pop, but what does it do to the x axis as well, and that could be every conversation we have, the timing -- the cliche -- john, where is the bridge -- where is the bridge to? jon: the bridge to wear -- the

second half of this year, maybe? tom: i am talking about the bridge to when we get ferro back in the office. lisa: that bridge is getting shorter. rumor has it. that bridge is getting short. there is a question, i will say, not about growth trajectory, but the policy bubble, those are the words of michael hair -- hartman of bank of america he said the policy bubble is fueling the asset price bubble. when those who want to stay rich start acting like those who want to get rich and suggests a late stage speculative blowoff and the blowoff can last longer than people can remain solvent trying to get out of it. it raises the conundrum -- does growth even matter, or isn't all about what happens physically and monetarily question mark -- monetarily. jon: we can start the drinking

game early, lisa and the world bubble. lisa: what are you drinking, scotch? jon: a little bit of breaking news, i'll be back in the studio monday morning. i am jonathan ferro. this is coming with me. [laughter] lisa: planting a flag. jon: this is bloomberg. ♪ karina: with the first word news, i am karina mitchell -- the body administration is time to get republicans on board with the coronavirus relief plan. his top economic adviser plans to meet with a bipartisan group to reach -- push for the bill but the price tag has growing opposition from republicans. president biden's pick for treasury secretary is opening the door to a tax increase.

the money would be used on infrastructure and expanding the social safety nets. infectious disease expert anthony fauci says it feels somewhat liberating to work with a new president after donald trump often try to sideline him in the fight against coronavirus. he admitted he had to contradict the former president at times such as when he advocated for the use of an unproven malaria drug to treat the virus. european union leaders are painting a bleak picture of the coronavirus warning mutant strains will lead to longer and stronger lockdowns and there is no sense of when the lockdowns will be lifted. governments are struggling with rising number of fatalities. samsung electronics might spend more than $10 billion to boost a program in texas that will help them catch up with taiwan semi

conductor. global news 24 hours a day on air and on bloomberg's quicktake powered by 2700 or and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. ♪

dr. fauci: i can tell you i take no pleasure at all of being a

situation of contradicting the president -- it wasn't something that you didn't feel you could actually say something in there wouldn't the repercussions about it. the idea that you can get up here and talk about what you know, what evidence, what the sciences, and know that is it, that is the science speaking. it is somewhat liberating. jon: a liberated dr. fauci in washington, d.c., with a biden administration. equity futures this friday morning a little bit negative, lower, down by 27 on the s&p 500. positive on the week for the s&p 500, pulling back from all-time highs as we close out the week. onto the bond market, pretty flat on the 10-year through the last five days. basically what we were last friday is where we are this friday -- 10-year yield down nine basis points.

the dollar -- euro-sterling positive. a slightly stronger euro in the mix this friday morning. tom: real yield the -- the negative yield, -1.02%, in a range, i would call it, and that would be identified. on the real young, look for it this afternoon, with jonathan ferro, i think it is in our community two hours long -- an incredible discussion on fixed income. an important conversation. martin mentioned it an hour ago on "surveillance," and we will focus on it with emily wilkins -- in the pandemic, the first days of the biden administration, emily wilkins, there is a major battle on the senate floor that is 50-50 about the rules between mr. schumer and mr. mcconnell -- what are they fighting about? emily: the filibuster -- they

are fighting about keeping the filibuster in place -- that is the mechanism the minority party can do to activate on bills they do not support. republicans want to keep that in place, but democrats have said republicans have eliminated other presidents in the senate. that precedents in the senate. tom: how is the minority leader, mike connell -- leader, mcconnell's, power different than a normal minority leader with a 50-50 vote that vice president harris breaks every time? emily: in some ways he is a minority leader, but this time it is very close. there is 100 senators -- every single one counts. if mcconnell cannot get one democrat to defer, they cannot pass legislation. if humor can get one of the looking to june with democrats,

that means they have more rooms. mcconnell is better in the -- better than another minority position. jon: let's talk about the $1.9 trillion plan -- 1.9 million -- $1.9 billion plan. we have heard continuously from the administration this be a bipartisan effort. how can it be when moderate republicans are not coming along for the ride? emily: negotiations -- the body administration plans to talk to republican and democratic senators about what the plan will look like, what if anything they can get through. it might not be 1.9 trillion. he might end up with a smaller number, but the biden administration is committed to using biden's ties with the

senate as well as, harris's ties with the senate. lisa: just to build on whatjon was talking about, we focus on publicans and how they are splintered in what they want, but so are democrats and there are a number of democrats saying this plan is not progressive enough, does not give enough money to states and local governments -- where are the fault lines there setting up the battles and how the democrats, the more liberal wing, is pushing back against biden? emily: you hit on the key talking points, the spending -- how much does the government want to go ahead and spend after they just passed a $900 billion stimulus package back last month in december? that is part of the discussion. there has been a lot of discussion about state and local funding -- how badly that is needed, funding for the vaccines -- biden has talked on the campaign trail and then after he won about getting those $2000 checks to americans. there are a lot of discussion

points on the table and it think it will become clear as the binders administration begins to engage with senators and how -- when the begin talking about how the next in this package will look like. lisa: another one of biden's proposal is to reopen schools in the next 100 days -- i know this is not necessarily what will happen in new york city and it is coming up against a lot of opposition from labor unions amongst others. how does he plan to do that? lisa: what biden asked via an executive order is for the department of health and human services to start looking into this -- if they were to open schools, what kind of guidelines with a need to follow -- what were they need to do, and he is also looking at the burning funding for the initiative to allow schools to reopen safely. it is more expensive to have a school with the safety precautions during a pandemic. that is something we will hear more on as the education and health department begins to dig into what a reopening would look like. tom: emily, one final question,

there has been a meme all week about the gentleman from vermont, the mittens up, and all of that -- i want to get away from the silliness of that. what is his contribution to senator schumer and president biden in the next 12 months? what can senator sanders do? emily: senator sanders has wide support across the nation for his progressive ideas. it is something he continually pushed when he ran for president, this last time as well as in 2016. he, kind of, is a voice for the progressive in america and a strong voice for them in the senate. exactly how that will wind up in negotiations -- a lot more people are looking toward the moderate numbers to strike deals and come to compromises, but it is the senate, and every senator can hold things up and if senator sanders wants to block legislation because it is not progressive enough, he might have the ability to do so if democrats cannot get republicans to come along with them.

jon: emily, thank you. great to catch up. emily wilkins in washington, d.c.. tom, i'm sorry, you cannot bring it up without discussing it. you can talk about the silliness of the meme and then say we cannot talk about the silliness of the meme. tom: first of all, i pronounced meme right, which is right. everyone has seen bernie with you at liverpool, in key west. the photo of you at the green parrot was famous. lisa: my favorite -- jon: my favorite was bernie with governor christie.

lisa: if someone is not keyed in, we're talking about bernie sanders at the inauguration. tom: he was with me at my inauguration. jon: i am jonathan ferro. this is "bl (announcer) do you want to reduce stress? shed pounds? do you want to flatten your stomach? do all that and more in just 10 minutes a day with aerotrainer, the total body fitness solution that uses its revolutionary ergonomic design to help you to maintain comfortable, correct form. that means better results in less time. you can do an uncomfortable, old-fashioned crunch or an aerotrainer super crunch. turn regular planks into turbo planks without getting down on the floor. and there are over 20 exercises to choose from. incredible for improving flexibility and perfect for enhancing yoga and pilates.

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jonathan: we are taking some weight of that the s&p 500 this friday morning. good morning in new york city and to our audience on bloomberg radio. i am jonathan ferro. markets shaping up as follows, we retreat on the s&p 500, from all-time highs. the -- down 28, negative about .7%. outside of that, in the bond market, yields on the week basically unchanged. 10-year, 1.09%. a flatter curve led by a move on the long end. down on the 30-year. foreign-exchange, euro slightly firmer. a stronger u.s. dollar.

sterling down about .4%. i am back on this program with romaine bostick. romaine: you said some of the weight coming off of the s&p this morning, and part of that is because of intel. we got earnings yesterday, a debacle of a rollout. the new ceo has not taken over yet. that will happen in february. but he did make an appearance on the call. financials were looking good. he gave an outlook for the manufacturing of capacity and the manufacturing strategy for intel, and he made it clear, intel is a chipmaker, with emphasis on maker, and they will continue to make chips. investors did not want to see that and fill maybe he should go the outsourcing route, farm out some of the problems they have been having internally, and that off to a taiwan semi are some other company to do it more

efficiently, cost-effectively, and investors did not get that. that is probably why you are seeing the softness in the share. long-term, they will continue making chips. and ibm another company with a relatively new ceo and facing some issues. tom: i enjoyed losing money on ibm long ago and far away. what was the tone of the ibm call? what is the urgency of the train wreck? romaine: most of the analysts we spoke to do not see it as a train wreck and were actually encouraged by it. declines pretty much across the board in their unit, but look at the cloud and ai sentiment. those numbers came in slightly less, but when you break out cloud from ai, the cloud business did well. that is linked to the red hat acquisition, and the new ceo was

instrumental in orchestrating that. they say that part of the business is working. but there is other stuff that the ceo needs to get his arms around. tom: ibm is priced where it was in 1999, 22 years ago. lisa: power through, romaine. tom: on ibm, how are they going to get rid of the rest of the business? romaine: unfortunately, they did not actually lay out any plans. there is a lot of speculation. the ceo has been on the job for nine, 10 months now, so give him some more time. a great analyst said, look, give it another few months and you will probably see more talk about that. they just did not outline it last night. lisa: we need to give tom something to drink, talk about

asset bubbles. romaine: i heard he had chris harvey on earlier, and i forgot the term you used -- look, a lot of talk about asset bubbles. look at where we stand here, specifically with tech stocks and the nasdaq kind of above the longer-term, historical averages. not only longer-term movie averages but some of those rsi 's. it gives you a sense of how long we have come on a historical basis, relative. the folks at bank of america saying, look, right now you have everybody chasing everything, and these are can't lose trades. but we know what can happen when we get to this sort of can't lose moments in the market. eventually somebody loses and usually spectacular. tom: i have no idea what that chart says. romaine bostick, thank you so much. rumor has it he will stick around for the close this afternoon. there are different notes out there.

as you know, a lot of punditry going on. marilyn watson is the antithesis of punditry. she writes very terse notes about coupon in total returns. she joins not from blackrock. you are looking towards a robust and diverse portfolio. what in fixed income would yield up, price down -- what does robust mean? >> robust means a very strong understanding of liquidity, so we have seen a huge increase in liquidity cross markets over the past year. it has been absolutely enormous. robust means looking at having a balanced portfolio in terms of maybe some cash and allocations to higher-yielding assets that you have a deep understanding of, that you have set a lot of groundwork in terms of metals. looking across the -- a lot of

groundwork in terms of fundamentals. we're are looking across the world. it really means a very, very deep understanding of every single position that we have in the fund, and it means that we really stress tested it and understand the risk reward to every single position that we have on. jonathan: let's get deeper into that. i think it is critical. back into last year, conversation about a global recovery, global side called, and getting leverage by playing europe. we are coming into 2021 slept on the face by the idea that it will be a lot more fragmented because of the vaccine rollout -- we come into 2021 slapped in the face. >> when you look at 2020 versus 2021, we have started off on a very different tone. we do have the rollout of the vaccine at very different paces in different countries and economies. we are seeing the virus emerging

in different economies, as well, and some cases pretty aggressively. we are continuing to see much more diversion in terms of economic growth and economic activity in the fundamentals. you look at parts of europe, for example, and you have very severe lockdown's still in the u.k., germany, and other parts of europe. you look at other countries, the u.s., less restrictions, obviously. when you look at economic activity and the restrictions and trying to inhibit the spread of the virus and you look elsewhere, just look at parts of asia, for example, there has been a huge improvement in gdp growth in countries like china and elsewhere. i feel like countries are getting bored, and the vaccine rollouts are different rates. it remains to be seen the efficacy of the vaccine and how much it really will help economic activity to improve. we think once the vaccine has

been rolled out in a meaningful way, we really will start to seize a very positive growth coming through -- we will start to see some very positive growth coming through. nominal growth we think is going to be very strong as the labor market continues to improve, as sectors like the service sector start to gain momentum. so we do think we will see some positive growth going forward globally. but i think what you say is 100% correct, it will be very diverse and the diversion will be huge -- the dispersion will be huge between different economies. jonathan: in europe with an asset classes and different chakra for use within the continent, what are you looking at? -- within asset classes and within different economies within the continent, what are you looking at? >> we do think we're going to canyon -- continue to see it

decent amount of compression between italy, between germany, partly because the ecb is going to continue to support, and have made it very clear, very supportive financial conditions that drop. there is also stimulus coming through. fiscal stimulus in italy, and payments will start to roll through over the next four years in terms of the recovery plan in europe, and that will be very meaningful when you start to see them coming through. on a macrolevel, we do like italy versus germany. at more of an asset class level, we do like some financials. we think we will see and approve meant in growth, and then we will see slightly higher -- sort of steeper yield curves, and that should benefit some of the european financials that we still think have some value to go. and in the securitized sector and on a case-by-case basis, we like some assets in the u.k.

on a sort of bottom-up level, we believe growth will start to come through. we think there will be very good opportunities within europe. lisa: when you are talking, i hear reflation trade bubbling up underneath what you are saying. in reflation trade, the idea of safety gets turned on its head. if benchmark yields are rising, some of the safer asset classes could suffer losses. are you getting bearish on investment grade corporate credit, which has lost almost one person in the u.s. so far this year, due to this reflation trade? >> i would not say that we are getting bearish, but i would say that we are becoming more cautious around valuations and around the yield and the income you can get from those trades, as well. so we have sort of shifted our portfolio a little bit from last year being very high-quality, very strong focus on investment

grade in the corporate space, now we have gone down a little bit in terms of credit rating, but then we are making sure that when we have those trades on, we have more in terms of hedge, be it in currency or cash or something else. what i think you are right, we are pricing for reflation coming through, and the market is pricing that, too, when you look at a range of different asset classes. so i do think that is true and think we are becoming more cautious in terms of valuation among some of the fair height -- the very high quality bonds out there. jonathan: marilyn watson, thank you for joining us this morning. futures down .8%, -32 point. that bank trade in europe will feel uncomfortable over the next couple years with an ecb not looking to move anytime soon. tom: we will have to see, just

that simple. this friday, it almost feels like a reset across a lot of different things. jonathan: the year never really got started. with tom keene and lisa abramowicz, i'm jonathan ferro. coming up shortly, new york's lieutenant governor kathy hochul. from new york, this is bloomberg. ♪ >> with first word news -- hospitals are getting a break in most of the u.s. coronavirus cases are declining in 46 states, and 42 of those, the seven-day case average has fallen more than 10% from a week earlier. still, the u.s. has not seen the full fallout from earlier infections, and deaths are likely rising at a rapid pace. meanwhile, republicans in congress are showing little appetite for another coronavirus stimulus bill. president biden's top economic advisor will meet with a bipartisan group of lawmakers to

push for the measure. some republicans say there is no justification for the $1.9 trillion price tag. congress recently passed a $900 billion leaf package. mitch mcconnell wants to put off donald trump's impeachment trial to next month to give the former president time to work on his defense. the start of the trail is in limbo until nancy pelosi transmits a single article of impeachment to the senate. it may be the oil market upon stress worst kept secret paired millions of barrels of venezuela heavy crude going to china, violating the u.s. embargo. we see males showing -- we see emails about this, the origin, transfers, and adding chemicals. bank of america will pay special bonuses to staff for working through the pandemic. those who make $100,000 or less will get $750. others will get a stock award.

bfa in compliance last year but still made almost $18 billion. global news 24 hours a day, on-air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am karina mitchell. this is bloomberg. ♪

clicks i am really -- >> i am really encouraged on the

president span for fighting covid and moving supply. thank god he is invoking the defense production act. that is what we need, the most muscular possible approach to get the supply here, new york city, and everywhere around the country, because we are running out of vaccines and we need more now. jonathan: new york city mayor bill de blasio and renewed confidence on the incoming administration. we will discuss that in a moment right here on "bloomberg surveillance." live from new york city, heard on bloomberg radio, seen on bloomberg tv. look at the price action. 7:48 eastern, futures negative. down 30 on the s&p 500. up by about .8% -- off by about .8%. a little bit of a retreat this friday morning. tom: a little bit of a retreat. i will not make much of it. oil comes in, brent crude, $54.76. i was in midtown manhattan

yesterday, the wasteland that it is. kathy hochul is the new york lieutenant governor, of the empire state and was constantly buffalo. we are going to consider the most important athlete in america, if you are a parent appalled by the jockocracy of america. the machine makes one sport wonders, whether they go on to a claim or not. josh allen is the most support and athlete in america, not because he is with the buffalo bills but because he was undrafted, unloved, and had the courage to do three sports in school. kathy hochul, what does josh allen mean to your buffalo? >> josh allen symbolizes all that is buffaloes, the underdog, the scrappy kid who never got respect. that is the life i grew up in, in an industrial area, the brunt of late-night jokes because of

our snow storms. we all relate to josh allen. he is one of us. his story is a story of many parts of new york state that a lot of people in the country can relate to, and that is why he is leading america's team to a great victory this weekend. tom: i cannot tell you enough, folks, the path of josh allen and what a throwback it is to another time. onto this years task at hand, lieutenant governor, this pandemic is here -- onto the serious task at hand, the pandemic is here and i hear republicans attempting to diminish or zero state and local aid. can you assume you will get that aid from washington? >> shame on them, for gosh sakes. did they not realize there is one reason we are not able to get the vaccine out there? the trump administration was the barrier. we need money to get this out and need to be compensated for the 15 billion dollars we have lost during this pandemic. and republicans cannot be in the way. they should start reading the

tea leaves. there is a reason why it is a democratic house, a democratic senate, and now it is a democratic white house. so they ought to understand that america is not with them, and america wants them to fight this pandemic with every resource it has, and that includes $350 billion going to state and local government so we can start paying to get this vaccine out there and helping downtown places, like midtown manhattan, start having a comeback. so we're focused on this, and republicans better not get in the way. lisa: meantime, the new york state and new york city regions are facing a historic budget deficit, and governor cuomo put up news this week saying he was planning to raise the top tax rate in new york city to 14.7%. state and local taxes, and that would be the highest rate in the nation. how realistic is it? what is the potential consequence in terms of the tax space and wealthier individuals

continuing to leave the area? >> it is what the governor laid out as the worst case scenario, and that is we do not receive the $15 billion. if you look at even a share of our population, a share or state should be receiving of the $350 billion, we should be getting upwards of $15 billion. and if we get less, say, $6 billion, then and only then, the governor said we are going to have to do things none of us want to do, but we will have to raise some of the taxes, borrow, have substantial cuts. it is extremely painful during a pandemic. i think he laid out that scenario so the people in washington could understand that we cannot have that is the plan-a. that has to be something we do not even get to. so our best option is to have a $15 billion share of the federal aid, and then we would not have to raise taxes. we are cognizant of the effect that has on people's decisions to stay.

but the business makers, we understand that, but we also have to deal with the reality, we cannot sustain a budget deficit that large. jonathan: to finish on the issue of vaccinations and vaccine rollout, what is the issue right now slowing things down from your side? >> supply. it is absolutely supply. the defense production act, if it had been invoked by president trump even six month ago to have the ppe -- remember when we were scouring the earth just to get masks and had to go to china and compete with other countries? it was disgusting. we could be ramping up vaccine production. i was at two sites yesterday, jones beach and aqueduct. we have mass distribution sites. they doing about 500 a day, sometimes 1000. we could double, triple that overnight. we have the capacity, have the staff, have everything in the place. simply, we need that spigot

turned on to be able to give us the supply. we can get it out, ready for it, waiting. our residents are desperately waiting for this, and we have actually administered 93% of the vaccines we have been given, one of the highest in the nation. i think i heard georgia had administeredjonathan: lieutenanf new york, kathy hochul, come back soon. the conversation needs to continue on the vaccine rollout. a big effort which is set to ramp up, and those numbers need to climb quickly. tom: what i learned yesterday, the blue-collarness of it, it will be done with 1000 here, too thousand there, but done one at a time, and it is literally the work of getting it done. what i am interested in is the stretch over 100 days, over 200 days, as we go down the age bracket were you get the vaccine summer of 2023.

jonathan: jokes aside, i think it is really frustrating for anyone in my position, my age group, and i am talking from my personal standpoint now. when i hear about a vaccine hesitancy in the groups that are prioritized, i am sitting here like a lot of other people saying, you know what, if they're hesitant, get me in the line. lisa, i imagine you feel the same way. lisa: without a doubt. that has been one of the conundrums, dealing with reports of vaccines being discarded because it was not being used because they cannot find enough people that qualified for the initial phases. it is an ongoing debate, the most efficient way to do this. but why weren't these plans established months ago? why is it still so up in the air now? tom: at nyu langone, the way they did it, you go in, you get the pfizer vaccine, and then ken langone gave me a sheet of

plywood on the way out the door. [laughter] lisa: what? oh, my gosh. tom: i am not going to comment on you and the blue pill. lisa: look at does markets. jonathan: nothing going to top that. i am so pleased that the clock is ticking down to the break, closer to the break. [laughter] ♪

>> we are in a wartime situation, and you do whatever it takes. >> you do not have to worry about inflation. >> doing what they need to do, revive an economy. >> the public still has money in reserves. >> there is going to be enormous spending in this country. >> this is "bloomberg surveillance." tom: good morning,